UAE: failed contenders for the lottery license ready to invest in?new verticals

Garance Limouzy August 5, 2024

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UAE: failed contenders for the lottery license ready to invest in?new verticals

The General Commercial Gaming Regulatory Authority (GCGRA) has recently awarded Game LLC the first exclusive license to operate the UAE Lottery, leaving Emirates Draw and Mazhooz without a slot in the national lottery sector. Despite this setback, these operators are now setting their sights on new gaming opportunities.

In January of this year, operators were invited to submit bids to secure the rights to operate the lottery.?Emirates Draw and Mazhooz, two contenders previously operating in the country, both paused their UAE operations from January 1?in compliance with GCGRA directives.

The GCGRA has not yet confirmed the availability of a second lottery license. However, there are indications of potential sub-licensing opportunities or the possibility for operators to apply for licenses in other gaming sectors.

Emirates Draw’s response to GCGRA decision

Emirates Draw is a prominent name in the UAE‘s gaming industry with nearly three years of operation and over $50 million awarded in prizes.

“We respect and commend the UAE government’s dedication to establishing regulated gaming industry standards that protect consumers and ensure fairness and transparency,” reacted Emirates Draw in a press release.

Mazhooz’s disappointment

Mazhooz, which has been operating since 2021 and has conducted 161 live draws, did not hide its disappointment: “While this delayed decision is indeed disappointing, especially as we kept our workforce at full capacity for the past seven months in anticipation of a positive outcome, we respect the selection process and the government’s commitment to setting standards within the industry.”

A strategic shift for both operators

The GCGRA’s decision to award the lottery license to Game LLC has prompted Emirates Draw and its competitors to re-evaluate their strategies.
Mazhooz has announced its intention to pivot into new gaming ventures: “We take this opportunity to thank our customers for their patience and unwavering trust in Mazhooz, and we invite them to closely follow our upcoming news.”

Emirates Draw reaffirmed its commitment to the UAE market and its intent to apply for other gaming licenses. The company also revealed plans to transition its weekly draws to an AI-powered Random Number Generator (RNG). In addition to its technological advancements, Emirates Draw is exploring opportunities beyond the UAE lottery and plans to apply for licenses in various gaming verticals, which could include sports wagering, internet gaming, and other areas of commercial gaming.